The Global Gateway project will contribute to climate action to mitigate the effects of climate change.
Solar photovoltaic plants will be installed on homes and on local business premises.
The European Investment Bank (EIB), the world's largest multilateral public bank, and Banco Santander (Brasil), the largest foreign bank in Brazil, have signed an agreement to foster the use of renewable energy in Brazil. Ricardo Mourinho Félix, Vice-President of the EIB, and Carlos Rey de Vicente, Banco Santander's Regional Head for South America, signed a €300 million loan in Brussels on 17 July 2023 during the EU-CELAC Summit of Heads of State and Government and the EU-LAC Business Forum.
The project is part of the European Union's Global Gateway investment strategy supporting infrastructure and improving global and regional connectivity in the digital, climate, transport, health, energy and education sectors.
The loan will support the installation of a series of small-scale self-consumption solar photovoltaic plants in Brazil, predominantly on rooftops, for a total combined capacity of around 600 MWp. The plants will be installed on homes and on the premises of small and medium businesses.
This Global Gateway project will contribute to climate action to mitigate the effects of climate change. The project will also help Brazil reach its targets for increasing the share of renewable energy sources in its annual electricity generation, and to achieve its ten-year national energy expansion plan. As a low-carbon power generation project, it will reduce carbon emissions and air pollution. It will also build new generation capacity as part of a self-consumption system that will reduce electrical losses and foster energy efficiency.
The operation signed today strengthens the EIB's role as a global climate bank and will mean that almost 80% of its total financing in Latin America in 2022 is linked to climate action and environmental sustainability. Furthermore, it contributes to Santander's climate strategy, which is committed to becoming net zero by 2050. Santander also strongly supports sustainable initiatives: in 2022 alone, more than BRL 32 billion (€6 billion) in sustainable business was made possible by the organisation in Brazil.
"I'm very pleased to announce this project with Banco Santander (Brasil) that will enable private sector investments in renewable energy, reduce carbon emissions and air pollution, and support additional renewable generation capacity in Brazil. This operation under EIB Global, the arm of the EIB created in 2022 for activities outside the European Union, builds on our global climate engagement and our support for climate action in Brazil over the last three decades," said EIB Vice-President Ricardo Mourinho Félix.
Commissioner for International Partnerships at the European Commission, Jutta Urpilainen, said: "This project will have a significant positive impact for Brazilian families and small businesses. Through the EU-Latin America and the Caribbean Global Gateway Investment Agenda, we are committed to work together to promote fair green and digital investment, and also help to achieve the Sustainable Development Goals."
"This partnership with the EIB will help us to continue moving towards a green economy that is prepared to face the challenges of the future. In a large and sunny country like Brazil, solar energy generation can play a fundamental role in our energy mix. With these resources, we will be able to support thousands of people and small companies have access to solar energy, and generate clean energy and savings for families across the country," said Carlos Rey de Vicente, Banco Santander's Regional Head for South America.
Background information
EIB Global is the EIB Group's specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.
https://www.linkedin.com/company/eib-global/
About EIB Global in Brazil:
The EIB is the largest multilateral public bank in the world. In 2022 it financed around €10.8 billion in investments outside the European Union via EIB Global, the arm of the EIB created that same year for activities beyond Europe. Brazil is the biggest beneficiary of EIB financing in Latin America. Since the EU bank started working there in 1997, it has provided over €5.4 billion to finance investments on favourable maturity and interest terms, with the aim of improving the quality of life of Brazilians. Brazil represents more than 40% of the EIB's portfolio in Latin America.
About EIB Global in Latin America:
EIB Global facilitates long-term investment with favourable conditions and provides the technical support needed to ensure that projects deliver positive social, economic and environmental results. Since the EIB began operating in Latin America in 1993, it has provided total financing of around €13 billion to support more than 150 projects in 15 countries in the region.
About the Global Gateway initiative:
EIB Global is a key partner in the implementation of the European Union's Global Gateway initiative, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank's 65 years of experience in this domain. Alongside our partners, fellow EU institutions and EU Member States, we aim to support investment of €100 billion (around one-third of the overall target of the initiative) by the end of 2027, including in Brazil and the rest of Latin America.
About the EU - Latin America and the Caribbean Global Gateway Investment Agenda (GGIA):
The European Commission coordinates the development and implementation of the EU-LAC Global Gateway Investment Agenda, which is a political commitment to work together, identifying fair green and digital investment opportunities in Latin America and the Caribbean, which will benefit from the open environment generated by trade and investment agreements and will help achieve the Sustainable Development Goals. It will be delivered through Team Europe initiatives: the EU, its Member States, development financing institutions including the European Investment Bank (EIB), export credit agencies and all other public sources of funding will be working together with the private sector.
About Banco Santander (Brasil):
